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Is there an election cycle in public employment? Separating time effects from election year effects

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  • Matz Dahlberg

    (Uppsala University, IFAU, CESifo & IEB)

  • Eva Mörk

    (Uppsala University, IFAU, CESifo, IZA & IEB)

Abstract

Do governments increase public employment in election years? This paper answers this question by using data from Sweden and Finland, two countries that are similar in many respects but in which local elections are held at different points in time. These facts make it possible for us to separate an election effect from other time effects. Our results indicate that there is a statistically significant election year effect in local public employment, a production factor that is highly visible in the welfare services provided by the local governments in the Scandinavian countries. The effect also seems to be economically significant; the municipalities employ 0.6 more full-time employees per 1,000 capita in election years than in other years (which correspond to an increase by approximately 1 percent).

Suggested Citation

  • Matz Dahlberg & Eva Mörk, 2011. "Is there an election cycle in public employment? Separating time effects from election year effects," Working Papers 2011/8, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2011-8
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    More about this item

    Keywords

    election cycle; public employment; exogenous elections;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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